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Strength Seen in Aviat Networks, Inc. (AVNW): Can Its 10.9% Jump Turn into More Strength?

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Aviat Networks, Inc. (AVNW - Free Report) shares ended the last trading session 10.9% higher at $68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 70.1% gain over the past four weeks.

AVNW extended its rally for the second consecutive day, driven by optimism over a multi-million rural broadband win with Nextlink Internet, one of several top RDOF (Rural Digital Opportunity Fund) award recipients. In addition, the company is witnessing significant traction for a solid deal in mobile 5G with a U.S.-based Tier 1 operator for microwave transport.

Price and Consensus

Price Consensus Chart for Aviat Networks, Inc.

This company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of +87.2%. Revenues are expected to be $64 million, up 4.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Aviat Networks, Inc., the consensus EPS estimate for the quarter has been revised 114.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AVNW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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